Construction Law/Claims in Civil Construction Project
We are working as a Civil construction Company and entered into an agreement with Pakistan Cricket Board for the construction of Multan Cricket Academy in 8 months. Unfortunately from very beginning the Client started committing defaults such as delay in handing over of site, Suspension of works for more than five months, Delay in every running payment, more than 6 months delay in issuance of variation order and stoppage of payment in this period and more than 15 months delay in providing the Electricity and Gas connection for commissioning and handing over since substantial completion. This has resulted an extra ordinary extended completion period of 48 months instead of originally 8 months. We have handsome losses and want your advice for the proper calculation of these losses guiding us what type of expenses and costs can be claimed.
Thanks and Regards
Eng. Naveed Iqbal
Apologies for the delay in replying this query.
Please do let me know the form of contract for better understanding and advise thereof.
Nonetheless, you claim should capture all the delay events and essentially include following heads:
1. Extension of Time
2. Prolongation Cost
3. Head office Overheads
4. Off-Site Costs
5. Loss of Productivity
6. Idle Equipment
8. Finance and Interests
9. Loss of profit
The above needs to be substantiated and I presume that prior notification were issued by to the client for each of the event.
Should you need any assistance to prepare the said claim, you may send me an e-mail on email@example.com.